« Back to Blog

Market Analysis – August 2017

Posted September 6, 2017

It is impossible to effectively time your investments based on the prospects for wars and government policies. Timing is almost always disruptive to financial plans and harmful to long-term investment returns. Investment experts and markets separate their financial commitments from politics. This bull market will end because of a recession and there is no recession in sight. The market is pulling back due to worries about North Korea. Pull backs are expected and healthy for market progress.

The Goldilocks Economy: Since the economic recovery began in March 2009, we have enjoyed modest economic growth, low inflation, low interest rates, steady demand for labor, and slow but steady wage increases. These forces have produced an economy that is not too hot, not too cold, but just right for steady planning and progress. This economic growth translates into solid corporate earnings, which have grown in the U.S. by double digits in the first half of 2017 compared to 2016; and, earnings growth has spread worldwide as the 45 largest economies are participating in synchronized expansion.

Surprising Briskness in Economic Growth: This was the headline in the August 31 New York Times. The article expounded on the economic recovery, now in its ninth year and showing unexpected strength. The U.S. Commerce Department reports that the U.S. economy grew by an annual rate of 3% in the second quarter ending June 30. This is the best quarter for growth in two years, and a great improvement over Q1 2017 growth of 1.2% annualized.

Index Investment Strategies at Bell: In our August 24 Investment Committee Update webinar recorded in the Bell client portal, we introduced insights gained from our years-long research into index investment strategies. Since our first day of operations in January 1991, we have always dedicated ourselves to finding the best planning and investment outcomes for our clients. We have been executing cap-weighted index and fundamentally-weighted index portfolios for clients, where appropriate, based on their financial plans. Please call your Bell advisor if you are interested in learning more about index strategies at Bell.

In general, the technology sector produced the best performance for our selected funds in August. Our Stable Growth accounts are showing steady growth, and with 10-year U.S. Treasury bonds now yielding close to 2%, 2017 continues to be a good year for bond investors. We always welcome your calls.

 

2 responses to “Market Analysis – August 2017”

  1. Please note I love to read your blogs on the computer as well as those news letters I really enjoyed it.BUT it’s little too conservative for my
    personal test though I am not a gambler but I do believe in calculating type of gambling . Mostly equity and some bonds and I have been lucky so far ! currently I am more then 500K in cash doing nothing simply because market too high …….sorry.

  2. YOUR KIND CONSIDERATION AND GUIDANCE WILL BE APPRECIATED.
    SEASONS GREETINGS AND AND SINCERE BEST WISHES FOR HAPPY HEALTHY AND OF COURSE ,
    PROFITABLE 2018. SINCERELY;
    HARRY & JASHU BHARUCHI

Leave a Reply

Your email address will not be published. Required fields are marked *

Sign up for our monthly Bell e-News.

To get the latest news and updates from us, please fill out the form and click "Subscribe" to receive our e-newsletter.

Market Analysis

White paper feature image
A Global Correction is Overdue. (2/2/2018)
February 2, 2018

Believe it or not, I would have liked to have seen a greater pullback in the stock market than the t...


Video

video feature image
Why is the Market So Strong, and What Could Go Wrong?
January 19, 2018

Join us as we explore these questions in our half hour webinar to discuss topics like What does the


Publication

bellinvest publicaion
Long-Term Care
January 26, 2018

Some years ago, a client came to me concerned about his long-term care policy. He purchased the poli...

Latest News

Jim and Bonnie Bell Underwriting Jonathan Cozart (aka Paint)!

Jonathan Charles “Jon” Cozart, known by his online alias Paint, is an American YouTube personality, musician, and comedian. Bonnie and Jim Bell, long-time supporters of the Oakland Symphony, are underwriting Cozart’s special appearance at the Symphony’s February 9 concert, “Pride & Prejudice: Notes from LGBTQ”. Jim had this to say about their sponsorship: It is […]

Latest Tweet

Connect With Us

bellinvest 20 year